DULUTH, Minn.--(BUSINESS WIRE)--
ALLETE, Inc. (NYSE: ALE) today reported third quarter 2017 earnings of
88 cents per share on net income of $44.9 million and operating revenue
of $362.5 million. Last year's results were 81 cents per share on net
income of $40.3 million and operating revenue of $349.6 million. Results
for the third quarter of 2017 reflect a favorable impact of
approximately $8 million after-tax, or 16 cents per share, for the
modification of a November 2016Minnesota Public Utilities Commission
(MPUC) order on the allocation of North Dakota investment tax credits at
a MPUC hearing on September 28, 2017. Net income in the third quarter of
2016 included an adverse impact of approximately $9 million after-tax,
or 18 cents per share, for the initial MPUC decision in October 2016.
Net income in 2016 also included approximately $3 million after-tax, or
7 cent per share, gain for the sale of ALLETE Properties' Ormond
Crossings project and Lake Swamp mitigation bank.

"We remain on track to meet our full-year earnings targets," said ALLETE
Chairman, President and CEO Al Hodnik. "We expect 2017 earnings to be
within a range of $3.15 to $3.40 per share, excluding the impact of the
MPUC's modification of its November 2016 order on the allocation of
North Dakota investment tax credits. We have made many accomplishments
during the year and are pleased that our efforts are delivering value to
ALLETE's shareholders. We believe we are well positioned to deliver
additional long-term value to our shareholders with our unique mix of
businesses."

ALLETE's Regulated Operations segment, which includes Minnesota Power,
Superior Water, Light and Power, and the Company's investment in the
American Transmission Co., recorded net income of $34.2 million compared
to net income of $45.0 million recorded in the third quarter of 2016.
Financial incentives under the Minnesota conservation improvement
program decreased $4.4 million after-tax from 2016 due to the timing of
the MPUC approval. In 2017, the conservation improvement program
financial incentive was approved and recognized in the second quarter.
Earnings in 2017 were also impacted by lower residential, commercial and
municipal sales resulting from milder temperatures this quarter, lower
sales to other power suppliers as a result of higher industrial sales
and lower market prices, lower transmission margins, and higher
depreciation, property tax and interest expense. These impacts were
partially offset by higher sales to industrial customers, the
implementation of final rates at Superior Water, Light and Power in
August 2017 and interim rates at Minnesota Power in effect since the
beginning of the year.

ALLETE's Energy Infrastructure and Related Services businesses, which
include ALLETE Clean Energy and U.S. Water Services, recorded net income
of $0.6 million and net income of $1.3 million, respectively. Earnings
at ALLETE Clean Energy decreased $0.4 million due to lower operating
revenue as a result of lower wind resources, partially offset by lower
operating and maintenance expense. Net income at U.S. Water Servicesdecreased $0.2 million from 2016 primarily due to higher
operating expenses as a result of investments for future growth in waste
treatment and water safety applications, partially offset by higher
operating revenue compared to the same period in 2016.

Corporate and Other, which includes BNI Energy and ALLETE Properties,
increased $16.0 million from 2016 primarily due to the previously
mentioned modification of a 2016 MPUC order on the allocation of North
Dakota investment tax credits. This increase was partially offset by a
decrease in earnings at ALLETE Properties due to lower land sales as
previously mentioned.

Earnings per share for the quarter was diluted by 3 cents due to
additional shares of common stock outstanding as of September 30, 2017.

ALLETE will host a conference call and webcast at 10 a.m. Eastern Time
this morning to discuss details of its financial performance. Interested
parties may listen live by calling (877) 303-5852, or by accessing the
webcast at www.allete.com.
A replay of the call will be available through November 5, 2017, by
calling (855) 859-2056, pass code 92681362. The webcast will be
accessible for one year at www.allete.com.

ALLETE is an energy company headquartered in Duluth, Minn. In addition
to its electric utilities, Minnesota Power and Superior Water, Light and
Power of Wisconsin, ALLETE owns ALLETE Clean Energy, based in Duluth,
U.S. Water Services headquartered in St. Michael, Minn., BNI Energy in
Bismarck, N.D., and has an eight percent equity interest in the American
Transmission Co. More information about ALLETE is available at www.allete.com.
ALE-CORP

The statements contained in this release and statements that ALLETE
may make orally in connection with this release that are not historical
facts, are forward-looking statements. Actual results may differ
materially from those projected in the forward-looking statements. These
forward-looking statements involve risks and uncertainties and investors
are directed to the risks discussed in documents filed by ALLETE with
the Securities and Exchange Commission.

ALLETE's press releases and other communications may include certain
non-Generally Accepted Accounting Principles (GAAP) financial measures.
A "non-GAAP financial measure" as defined as a numerical measure of a
company's financial performance, financial position or cash flows that
excludes (or includes) amounts that are included in (or excluded from)
the most directly comparable measure calculated and presented in
accordance with GAAP in the company's financial statements.

Non-GAAP financial measures utilized by the Company include
presentations of earnings (loss) per share. ALLETE's management believes
that these non-GAAP financial measures provide useful information to
investors by removing the effect of variances in GAAP reported results
of operations that are not indicative of changes in the fundamental
earnings power of the Company's operations. Management believes that the
presentation of the non-GAAP financial measures is appropriate and
enables investors and analysts to more accurately compare the company's
ongoing financial performance over the periods presented.

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About ALLETE

ALLETE is a publicly held company that operates in a complex, dynamic, competitive and regulated environment. ALLETE's board of directors, accountable to its shareholders, is responsible for the direction and control of the company.

All employees and managers at ALLETE are expected to comply with the letter and spirit of the company's ethics policy, as well as with the policies and procedures of individual business units and the laws and regulations that govern our business.